• droans@lemmy.world
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    10 months ago

    They’re called balloon loans. They’re pretty common for mortgages anywhere outside the US. Instead of paying principal plus interest each period, you only pay the interest. At the end of the term, you pay the principal itself.

    They also can’t just hand the keys back unless it’s in the original contract or the bank agrees. If a lot of companies are choosing to ditch their properties, the banks will choose to refuse this option.